Summer is in full swing – markets are watching the weather and waiting for data from the US Department of Agriculture on Friday.
It has been a week of price correction across grains and oilseeds, with corn down 10% while soybeans and wheat have moved down 6%. Crop progress reports showed further deterioration, with a 5% reduction in the good-to-excellent-condition rating for corn and a 3% reduction for soybeans, but traders seemed more focused on the nominal improvement in current weather prospects. The recent volatility in prices makes for an interesting set-up heading into the second half of the week and the release on Friday of critical acreage and grain stocks reports by the USDA. Most trade estimates are expecting slightly lower numbers for both corn and beans, but it will be interesting to see the extent of market reactions if those figures materialize.